NEW DELHI: Advance tax collections have increased nearly 20% to over Rs 6.2 lakh crore, helping sustain the growth momentum seen during the current fiscal.
The provisional data for advance tax up to Sunday, which includes the third instalment, is seen to be healthy with corporation tax accounting for Rs 4.8 lakh crore or nearly 77% of the mop-up.
The data also indicated that corporate performance is so far holding up following a good festival season and the third quarter performance for companies is expected to be good.Companies and certain individuals have to pay advance tax in four instalments with up to 75% of the liability to be cleared by December 15 and the last instalment due on March 15.
So far this year, income and personal tax as well as GST collections have remained buoyant and have raised expectations of the government doing better than what it had budgeted for.
Latest data released by the Central Board of Direct Taxes pegged net collections during the fiscal year up to December 17 at Rs 13.7 lakh crore, nearly 21% higher than a year ago. This includes corporation tax of over Rs 6.9 lakh crore, after refunds. On a gross basis, collections were estimated to be 17% higher at a little under Rs 15 lakh crore.
So far, refunds of Rs 2,25,251 crore have also been issued, which relate to FY24. The Centre is hoping that higher than budgeted tax collection as well as strong dividend receipts from public sector companies, banks and RBI will not just help make up for the shortfall on disinvestment but also give it some headroom to meet higher spending requirements ahead of the Budget.
So far, the government is on course to achieve the fiscal deficit target of 5.9% of GDP as it has also kept a tight leash on spending and restricted the first supplementary demand for grants at under Rs 60,000 crore.
The provisional data for advance tax up to Sunday, which includes the third instalment, is seen to be healthy with corporation tax accounting for Rs 4.8 lakh crore or nearly 77% of the mop-up.
The data also indicated that corporate performance is so far holding up following a good festival season and the third quarter performance for companies is expected to be good.Companies and certain individuals have to pay advance tax in four instalments with up to 75% of the liability to be cleared by December 15 and the last instalment due on March 15.
So far this year, income and personal tax as well as GST collections have remained buoyant and have raised expectations of the government doing better than what it had budgeted for.
Latest data released by the Central Board of Direct Taxes pegged net collections during the fiscal year up to December 17 at Rs 13.7 lakh crore, nearly 21% higher than a year ago. This includes corporation tax of over Rs 6.9 lakh crore, after refunds. On a gross basis, collections were estimated to be 17% higher at a little under Rs 15 lakh crore.
So far, refunds of Rs 2,25,251 crore have also been issued, which relate to FY24. The Centre is hoping that higher than budgeted tax collection as well as strong dividend receipts from public sector companies, banks and RBI will not just help make up for the shortfall on disinvestment but also give it some headroom to meet higher spending requirements ahead of the Budget.
So far, the government is on course to achieve the fiscal deficit target of 5.9% of GDP as it has also kept a tight leash on spending and restricted the first supplementary demand for grants at under Rs 60,000 crore.